SEMINAIRE DE RECHERCHE EN ECONOMIE - GATE Lyon Saint-Etienne : Desmond Lo

Desmond Lo, Santa Clara University présentera un séminaire intitulé : The Role of Ownership Size and Proximate Customers on Survival: Evidence from Multi-Establishment Restaurants.

Thème de recherche / Main topics : Retailing, Contracting and Organizational Governance, Distribution Channels

Résumé / abstract  :Economies of scale foster large multi-establishment firms’ competitiveness. Anecdotal evidence and a few studies, nonetheless, find that more establishments under a single ownership do not necessarily outgrow and outperform small ones. Applying the notion of fit between ownership size and proximate customers, we posit that an establishment affiliated with more units under an owner performs better in markets where its proximate customers are transient rather than local residents. Using a sample of multi-establishment restaurants, our evidence suggests that establishments under large ownership and surrounded by transient customers survive longer. Among the smallest owners, however, establishments survive longer in markets characterized by local residents rather than transient customers. Our results demonstrate the importance of optimizing the external fit between organizational form and environmental resources.

Desmond Lo

The Role of Ownership Size and Proximate Customers on Survival: Evidence from Multi-Establishment Restaurants

Co-authors : Nydia MacGregor (Santa Clara University).